CMRL-Exalogic Case: Pinarayi Vijayan Hits Back at ED Action, Says It Is an Attack on CPI(M), Not Me
The ED has sought an FIR against Pinarayi Vijayan, Veena Vijayan and Mohammed Riyas in the CMRL-Exalogic case, while Vijayan has questioned the agency’s allegations and called the action political.
Thiruvananthapuram: Former Keralam Chief Minister and Leader of the Opposition in the Assembly Pinarayi Vijayan has for the first time openly reacted to the Enforcement Directorate’s (ED) action in the CMRL-Exalogic case. Vijayan described the allegations as an old matter being presented in a new way.
He alleged that a common political agenda is visible between the BJP government at the Centre and the Congress-led UDF government in the state to target him and the CPI(M). Vijayan said the action was not personally directed against him but was an attempt to weaken the CPI(M).
The ED recently sent a 25-page report to the Keralam Director General of Police seeking registration of an FIR in a corruption case against Pinarayi Vijayan, his daughter Veena Vijayan, and his son-in-law and CPI(M) MLA P.A. Mohammed Riyas. The agency sent the report under Section 66(2) of the Prevention of Money Laundering Act (PMLA). The state police and concerned government departments are now legally examining the ED report and the documents submitted along with it.
Vijayan Calls ED Action a Political Attack
Speaking to the media on Saturday, September 12, Vijayan said the ED’s latest action cannot be viewed separately from the broader political developments that have emerged in the state following the change in government. He alleged that central investigative agencies are being used to put political opponents under pressure.
According to the report, Vijayan said various allegations have been levelled against the CPI(M) for nearly a decade. He claimed that the ED has now created a new narrative around the CMRL-Exalogic case. He questioned how the agency’s new claims could be accepted when there were contradictions between its earlier and current allegations.
What Is the CMRL-Exalogic Case?
The CMRL-Exalogic controversy began with financial transactions between Kochi-based mining company Cochin Minerals and Rutile Limited (CMRL) and Veena Vijayan’s company Exalogic Solutions Pvt Ltd. Exalogic had entered into an agreement to provide IT and consultancy services to CMRL.
The ED alleges that CMRL paid around Rs 2.78 crore to Veena and her company between 2016 and 2021, while, according to the agency, no actual services were provided in return for the payments. The investigating agency claims that the payments were shown as consultancy fees but were allegedly used to route bribe money.
The ED has made a more serious allegation in its latest report. According to the agency, Pinarayi Vijayan allegedly received Rs 3.28 crore in bribes from CMRL through his daughter Veena.
ED Seeks FIR Against Pinarayi, Veena and Riyas
The ED has sought registration of an FIR by the state police against Pinarayi Vijayan, Veena Vijayan and Mohammed Riyas under the Prevention of Corruption Act. The agency has also included information related to the alleged financial transactions and money trail in its report.
According to the report, the ED has also brought Riyas’ role under its investigation. The agency alleges that Riyas helped receive the alleged bribe money and transfer a portion of it to Dubai. Veena has also been accused of allegedly helping collect the money and transfer it further.
During its investigation, the ED allegedly identified Exalogic as a channel used for transactions that the agency does not consider genuine business payments. The investigation also mentions several other individuals and entities, including CMRL Managing Director S.N. Sasidharan Kartha and former company finance officer P. Suresh Kumar.
Hawala and Dubai Transactions Also Under Investigation
The case has not remained limited to payments made from CMRL to Exalogic. The ED has also expanded its investigation into the alleged further movement of the money.
The investigating agency says that handwritten records recovered during searches contained references to transactions involving around Rs 20.05 crore in Indian currency and UAE dirhams worth Rs 3.49 lakh, or approximately Rs 85 lakh.
The agency is investigating the alleged transfer of the money to Dubai and the wider financial network associated with it.
The ED is also examining whether any part of this financial trail was connected to expenses linked to Mohammed Riyas during the 2021 Assembly elections. Possible violations of the Foreign Exchange Management Act (FEMA) are also being investigated.
Veena Vijayan has already been questioned by the ED in the case. The agency also examined her bank locker and seized electronic and other documentary material during searches.
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Vijayan Questions ED’s Allegations
Pinarayi Vijayan questioned the credibility of the ED’s latest allegations, saying that contradictions are visible within the investigating agency’s own claims. According to him, the ED has on one hand alleged that CMRL suffered losses, while it is now claiming that he, while serving as Chief Minister, provided undue benefits to the company.
Vijayan questioned how CMRL could have received undue benefits from the government if the company had suffered losses. He asked the investigating agencies to provide any concrete example showing that a decision taken by him as Chief Minister had illegally benefited CMRL.
He also said that the transactions between CMRL and Exalogic took place through banking channels and that the transactions were subject to taxation. According to Vijayan, some allegations related to Exalogic have been challenged in the Delhi High Court.
Vijayan Also Refers to Supreme Court Judgment
Vijayan also referred to earlier legal cases in his defence. He said allegations made by Congress MLA Mathew Kuzhalnadan in 2024 did not receive the legal backing required for further action against him.
He claimed that the Supreme Court had also not accepted the allegations made against him in connection with the matter. However, this is Vijayan’s claim and should not be treated as a final judicial finding in the case against him. The ED’s investigation and its latest allegations are part of a separate process.
What Will the State Government Do Now?
After receiving the ED report, the state government has said that it will follow the legal process rather than immediately registering an FIR. Keralam Chief Minister V.D. Satheesan said the ED’s recommendation would be legally examined before a decision is taken on further action. The state Home Department has also sought legal advice from the Advocate General.
The state police chief has received the ED’s 25-page report. It contains details of the alleged transactions, account-related information and the proposed charges. The police and government will now have to determine whether the available material is sufficient to register an FIR.
Another legal aspect of the case is that the report names two sitting MLAs. Therefore, the next stage of the process could also raise the question of the legal sanction required under the Prevention of Corruption Act. However, the process of registering an FIR, conducting an investigation and obtaining the necessary sanction for prosecution are separate legal stages.